Nissan Lowers Annual Sales Outlook Amid Mounting Competition in China
(MENAFN) Japanese automaker Nissan has reduced its vehicle sales target for fiscal 2026, citing softer demand and growing competitive pressure in the Chinese market.
The company now anticipates global sales ranging between 2.97 million and 3 million vehicles, revising its earlier estimate of 3.15 million units.
Nissan attributed the downgrade largely to the faster-than-expected transition toward new-energy vehicles in China, which has added pressure to its performance in the country. However, the automaker raised its sales expectations for the United States and Japan.
“China remains our most significant challenge, and we need to remain agile,” CEO Ivan Espinosa said.
The company's operating profit for the July-September quarter dropped to 2.1 billion yen ($13.2 million), compared with $324.1 million in the corresponding period last year. The decline was largely due to the absence of a previous financial benefit from reduced emissions-related expenses in the US.
Meanwhile, Nissan's quarterly net loss improved to $273.8 million from $668.4 million a year earlier.
The automaker kept its full-year operating profit target unchanged at $1.26 billion, anticipating that new vehicle launches, increased sales volumes and a more favorable product mix will help strengthen earnings in the second half of the fiscal year.
Nissan's Re restructuring initiative generated an additional $692.3 million in cost reductions during the first half.
The company plans to unveil a new business strategy in February 2027.
The company now anticipates global sales ranging between 2.97 million and 3 million vehicles, revising its earlier estimate of 3.15 million units.
Nissan attributed the downgrade largely to the faster-than-expected transition toward new-energy vehicles in China, which has added pressure to its performance in the country. However, the automaker raised its sales expectations for the United States and Japan.
“China remains our most significant challenge, and we need to remain agile,” CEO Ivan Espinosa said.
The company's operating profit for the July-September quarter dropped to 2.1 billion yen ($13.2 million), compared with $324.1 million in the corresponding period last year. The decline was largely due to the absence of a previous financial benefit from reduced emissions-related expenses in the US.
Meanwhile, Nissan's quarterly net loss improved to $273.8 million from $668.4 million a year earlier.
The automaker kept its full-year operating profit target unchanged at $1.26 billion, anticipating that new vehicle launches, increased sales volumes and a more favorable product mix will help strengthen earnings in the second half of the fiscal year.
Nissan's Re restructuring initiative generated an additional $692.3 million in cost reductions during the first half.
The company plans to unveil a new business strategy in February 2027.
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